Is Chipotle Mexican Grill Stock (CMG) a Buy Ahead of Q2 Earnings?
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What to Watch on July 23
Wall Street expects Chipotle Mexican Grill to report earnings of $0.33 per share, down 3% from the same quarter last year. Revenue is expected to increase about 5% year-over-year to $3.11 billion.
Investors will pay attention to management's commentary on consumer spending amid macro woes and the impact of tariffs.
Analysts' Opinion about CMG Stock Ahead of Q2 Print
On July 17, BMO Capital analyst Andrew Strelzik upgraded the stock from Hold to Buy and increased the price target to $65 from $56, suggesting more than 20% upside.
The analyst said he expects Chipotle's same-store sales and profit margins to improve in the second half of 2025. He also pointed to the company's strong U.S. store growth, which could rise to around 10% over time. Strelzik believes these trends, along with Chipotle's strong competitive position, support a higher valuation. His $65 target is based on a 45x price-to-earnings ratio, in line with the stock's historical average.
Meanwhile, UBS analyst Dennis Geiger raised his price target on CMG stock to $65 from $60 and maintained a Buy rating on the stock.
Geiger said second-quarter same-store sales are likely to be soft due to tough comparisons and macro headwinds, but he expects sales trends to improve through the quarter and into the second half of 2025. UBS sees recent weakness as temporary, with no major structural issues. Overall, he believes Chipotle's key growth drivers, such as menu innovation, marketing efforts, and better store efficiency, should continue to support its performance.
Is CMG Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on Chipotle Mexican Grill stock based on 21 Buys and eight Holds. The average CMG stock price target of $60.44 implies about 12.07% upside potential from current levels.
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